If you are a dual citizen, a US citizen or green card holder living in Canada, and/or a rental property owner in the USA, our firm’s knowledge and understanding of US and Canadian Income tax rules can help you with your US income tax requirements and obligations.
We can not only prepare your US tax returns but help you avoid the pitfalls of US tax regarding PFIC income, Foreign Trust issues (Ie. TFSA, RESP) and how to ensure compliance with rules specific to the USA (ie. FBAR).
For individuals who have not filed in the US in many years, we are well versed in the Streamlined Foreign Offshore procedures to ensure you become compliant without being subject to non-filing penalties.
Lastly, we not only help Canadians who own real estate in the US meet their US income tax obligations by filing the required returns but also assist them in structuring their purchase to optimize foreign tax credits thereby avoiding double taxation.
The US tax code allows for the use of pass-through entities. These dual use entities permit the taxpayer to enjoy the legal protection of a corporation while being simulatenously being taxed at a lower rat.
In contrast to Canada, where the integration principle equilibrates the ultimate income tax rate between corporations and individuals via the payment of dividends, the US knows no such concept.
We prepare US C-corp returns (1120), partnership and S-Corp returns (1065) as well as Limited partnerships, Limited liability Partnerships as well as Limited Liability Corporations returns.
For individuals we regularly prepare 1040 returns (US citizens living abroad) and 1040NR returns (non-residents doing business or earning income in the US).
The IRS regulations are complex. The disclosures numerous, but rest assured we make get you compliant with the IRS and keep you there.
In the past, many US citizens living in Canada and abroad did not file an annual US income tax returns (1040).
Taxpayers residing outside of the US naively thought if they paid their taxes in the foreign jurisdiction they were following the law.
In 2010, FATCA (Foreign Account Tax Compliance Act) legislation was passed which is just a fancy way to say the tax department of different countries would share information about taxpayers.
You have probably noticed that your bank today asks you to sign US tax forms (ie. W-8).
In order to assist US non-residents to become FULLY compliant and avoid being assessed ENOURMOUS penalties for failure to file, the IRS introduced the Streamlined Foreign Offshore Procedures.
Essentially a non-filer (regardless of how long), files the last 3 years of US income tax returns and 6 years of financial disclosures.
When the filing is done under this program and provided taxes were declared to the foreign jurisdiction, NO penalties are assessed. Moreover, in general no taxes are payable to the US due to claiming foreign tax credits.
We will prepare your US tax returns as required by this program and give you piece of mind that you won’t one day come home to a letter from the IRS.